Topdown Analysis Of SOLUSDT Using Support And Resistance Strategy And RSI Indicator As A Confluence

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Hello great minds,

It is a wonderful opportunity to come before you all today to discuss on an issue of great importance in the cryptospace.

I believe you are doing perfectly fine and are enjoying your activities in the community as you actively promote steemit across various social media platform.

Today, I will be sharing my analysis on solusdt, and Solana is a popular token in the cryptospace.

Solana is a very popular project in the cryptospace and has brilliant team who are diligent and have great fundamentals, and as such, I will be sharing my analysis.

Please stay tuned and check out my analysis on this great token.

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ANALYSIS USING SUPPORT AND RESISTANCE STRATEGY

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My analysis of the cryptomarket often begins from the higher timeframe to the lower timeframe, but I prefer beginning mine from the monthly timeframe.

The monthly timeframe helps me a lot in filtering out noise from the market, and alongside that, it also plays a huge role in the identification of market trends.

Begining with the monthly timeframe of the pair solusdt, we can see that there are bullish and bearish candles present in the market.

And we can also see that there are lesser candles on this timeframe, and this is because each candle is formed within the space of 1month.

Also on this timeframe, it is easier for the overall market trend to be detected, and we can see that the market is being bullish on its most recent legs.

I then continued my analysis on the weekly timeframe and on this timeframe, I could see more candlestick than on the monthly timeframe.

And there are more candlestick on this timeframe because each candle here is being formed within the timeframe of 7days.

And on this timeframe, I could spot a key level and this level is functioning as a resistance level to the market, as there are more sellers than buyers on this timeframe.

And to continue my analysis, I moved to the daily timeframe, and on this timeframe, I could feel the presence of the buyers and sellers in the market.

This timeframe has more noise than the weekly timeframe, and this is because each candle here is formed within the space of 24hours.

And despite the noise on this timeframe, I was able to spot another level and this level is functioning as a support level to the market price.

And on this level, I can see that the market has been unable to break below this level, and this is because there are more buyers than sellers on this level.

And moving to the 4hr timeframe, I could see the market movement more clearly.

And from the above screenshot, I can see that the market has traded towards this support level, and as a result of the buying pressure, the market has been rejected.

And looking carefully, we can see that the market has formed several bulllish candles, and this has given me a bullish bias of the market.

And moving to the 2hr timeframe, I could see the market overall, and I could see how noisy the market is.

It is on this timeframe that I take my entry into the market but before entering the market, I decided to search for confluence using the relative strength index indicator.

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CONFLUENCE USING RELATIVE STRENGTH INDEX INDICATOR

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The rsi indicator is a technical tool that is used to detect overbought and oversold market.

When the rsi oscillator crosses above the 80% line, the market is said to be overbought and this is known to be a bearish trend reversal signal.

And when the rsi oscilator crosses below the 20% level, the market is said to be oversold.

An oversold market signifies a bullish trend reversal signal, that is , the market is expected to move in the upside direction.

I then decided to add the rsi to the monthly timeframe and on this timeframe, I noticed that the rsi has crossed above the 80% line.

And this is an indication that the market is being overbought and an overbought market is one that signals a bearish trend reversal.

That is, it shows the weakness of buyers and the strength of the sellers in the market.

And moving to the daily timeframe, I noticed that the rsi has crossed below its 20% line.

And as such, the market is said to be oversold and an oversold market is one that signals a bulllish trend reversal.

And this is in alliance with my analysis using the support and resistance strategy, and then, I decided to move to the 2hr timeframe to search for my entry into the market.

And on the 2hr timeframe, with my bullish bias, I entered the market from the closest support level.

And my take profit was placed on the market closest resistance level, just as seen above.

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CONCLUSION

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Solana is a very good project in the cryptospace but I encourage all to make their own research before investing in any token.

My post should not be taken as a financial advise rather as an educational content.